Turbo Tax Business - Share Distributions / Retained Earnings Error

Forum|Forum|2 years ago
February 10, 2024
1 reply
0 views

I have entered $20,000 in Shareholder Distributions (Cash) in the Step By Step process in the first part of TurboTax, but when I get to the Balance Sheet / Retained Earnings section in TurboTax, the Shareholder Distributions says “$0” . . . thus Turbo Tax’s Retained Earnings is $20,000 off from my QuickBooks Retained Earnings.

It appears that TurboTax is not bringing the Shareholder Distributions over to the Retained Earnings section of the Balance Sheet.

TurboTax Business Windows

Best answer by Mike9241

is it showing on the k-1s and m-2 line 7 in column a?

Mike9241Answer

is it showing on the k-1s and m-2 line 7 in column a?

sduttonusaAuthor

I see the $20,000 on line 16 on my K-1 "Items affecting Shareholder Basis"

On the M-2 worksheet, the $20,000 is at the bottom, line G, "Distributions in excess of Retained Earnings"

My Retained Earnings for my S-Corp are currently in the negative, so the $20,000 is not being "added" to the negative in Turbo Tax, but is being added to the negative in QuickBooks. I was told by an accountant that the Share Distributions were against my Basis . . . not Retained Earnings.